It is a long weekend in the US, so there might not be much market appetite to go chasing fresh moves in the new week for now.
That could see the bit-part relief from Friday last week carry over but overall risk sentiment is still looking rather iffy. Equities are gaining a light breather but the technicals aren't looking great whatsoever. A simple look at the weekly chart for the S&P 500 exemplifies what an awful week it was for stocks:
Upon breaking the 38.2 Fib retracement level at 3,815, we are now seeing price fall into an air pocket with room to drop towards support around the 50.0 Fib retracement level and 200-week moving average (blue line) at 3,502-05.
Elsewhere, the SNB policy pivot remains the standout move in terms of central banks last week and that could spark further moves in FX during the course of the week. Otherwise in Europe, there will still be some attention paid to regional bonds as the ECB looks to come up with a detailed plan to deal with fragmentation risks.
There won't be much in terms of key releases on the day, so expect the flows and technicals to continue to do the work for now.
0600 GMT - Germany May PPI figures
0800 GMT - SNB total sight deposits w.e. 17 June
0900 GMT - Eurozone April construction output
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
